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 EMPLOYEE ENGAGEMENT AT COSTCO WHOLESALE UK

INTRODUCTION:

Employee engagement has been a growing subject of interest for enterprises as the twenty-first
century progresses. Previously, companies were output-focused, with output being the major
focus for increasing profitability. The work has developed, and the dynamic of employees'
sentiments is now considered a component in the success of an organization. In the next
discussion, we will present the notion of employee engagement, a topic that arose generations
earlier and started to gain traction in the 1990s. Employee engagement has grown in importance
to the point that firms are now focused on developing programmes that promote a solid
relationship between employees and employers. Costco has consistently sought to harness its
human resources through employee engagement programmes in order to gain a competitive
advantage in the industry. Their accomplishment with the concept demonstrates the value of
employee engagement and provides as an excellent example to other firms.

EMPLOYEE ENGAGEMENT-DEFINED:

Employee engagement is defined in a variety of ways by professionals. Employee engagement is

defined as "complete involvement with one's work and dedication to one's job and organization
(and) is related with higher productivity, superior customer service, and lower turnover" in
Chapter Two of the book Fundamentals of Human Resources Management (Noe, Hollenbeck,
Gerhart, & Wright, 2014). Essentially, it is a measure of your dedication to your business and its
aims. Turning up every day and putting in eight hours of work without complaint does not
always imply that you are motivated to work. You may be comfortable, happy, and content with
your contribution of eight hours of work, but it does not guarantee that you are put in excellent
support and effort about the goals of your organization.

IMPORTANCE OF EMPLOYEE ENGAGEMENT:

Employee engagement is a basic viewpoint in an association's prosperity and seriousness. Solid

representative commitment produces more noteworthy results that benefit the organization, its
workers, and its clients. According to a Gallup Organization meta-investigation of 1.4 million
workers, firms with undeniable degrees of commitment delivered 22% more. A most meta
affirmed a solid connection between representative commitment and key execution factors
including consumer loyalty, benefit, efficiency, turnover, wellbeing episodes, misfortune or
burglary, non-attendance, patient security concerns, or disinfection (Reilly, 2014). Management
must foster employee engagement because otherwise, their employees would lack motivation
and devotion to the company. Employees which are engaged contribute to your firm gaining a
competitive edge over its rivals by taking responsibilities for attaining corporate goals and
objectives. Employees who are more devoted to the firm are also much more committed to one
another and assist colleagues in doing far better. Most importantly, as a manager, you want your
best performers to stay engaged so they don't quit or "jump on board" to your competitor.

POTENTIAL ISSUES OF EMPLOYEE ENGAGEMENT AT COSTCO:

Employee engagement has been considered as a terrific method to boost an organization's

productivity, but just before getting too swept away with the notion, there are several possible
difficulties which must be addressed. To begin, employees do not necessarily need to have an
emotional connection to a business in order to perform successfully. Getting involved at
workplace contributes to better production for a wide group of people, however certain people
may function without being engaged with the company. Such people are more inclined to strive
on their own merits, doing tasks for their personal enjoyment instead of for the sake of aiding the
company. There is no "one-size-fits-all" strategy that works for all personnel; heterogeneity
stands in the way of that. Employee engagement is only achievable when all of the firm's
elements believe in the project. This means that in order to have a good impact on employees,
supervisors, managers, and executives must all be on board. Having such organization will assist
with supporting the endeavors made in the district and would offer them the most obvious
opportunity with regards to progress (Sullivan, 2012). Zeroing in on worker commitment is
surely something worth being thankful for, however they should do as such according to a
business viewpoint, understanding that projects to draw in with individuals have obstacles which
should be taken care of.

EMPLOYEE ENGAGEMENT AT COSTCO

Costco has 663 stores and employs around 200 000 people in the United States, United
Kingdom, Canada, Taiwan, Korea, Japan, Australia, Mexico, and Spain. Because of its complex
in-store strategy and low-cost business model, Costco has indeed been designated a "Best Place
to Work" by several business opinion writers, including Forbes. The question is, how can Costco
keep such better employee relationships going?

Management experts believe that Costco's emphasis on corporate social responsibility

distinguishes it from competitors.  Their "focus on doing "the right thing" for their partners in
general, as a goal of long range attainment, is a unique strategy with intriguing implications for
many current business issues" (Caitlin, 2012, pg.1). Costco has earned a reputation for providing
the greatest employee perks in the retail industry, where labor expenses account for 80% of total
spending. Costco is well-known as a store that "does it well, rewards fairly, and provides major
benefits." The excellent salary and assistance packages provided by Costco generate a feeling of
mission in its workers. Costco honors its workers because they understand that they're the only
company's most valuable asset and are ultimately accountable for its success. Costco labor force
has increased at a minimum wage of $10 per hour, with frequent raises, so a full-time hourly
worker may make $40,000 in three years. Costco has proved the capacity to attract, keep, and
benefit from higher-quality labor pool by paying its employees significantly more than industry
norms, giving it a critical strategic advantage over competitors. According to Costco's CFO,
Richard Galanti, the company has been run "on the idea that if we pay better than the average,
offer salaries people can survive on, have a beautiful ambiance, and excellent wages, we'll be
able to employ individuals who will stay longer and be more successful."

Costco's leadership place a premium on its workers. In addition to the high compensation and
excellent employee perks, companies have started out of their way to demonstrate that they care.
Costco, for example, has devised strategies to assist staff in keeping their spending low
throughout the recent gas price increase. "Even the folks who work at Costco - who make the
sort of salary we pay - are getting struck at the gas pump," said CEO Jim Sinegal. Costco is
dealing with plan arrangements that will permit representatives who dwell in a similar area to
work similar moves and travel together. Front-line employees consistently communicate with the
association's clients, and they eventually represent the authority's style of living and the quality
of the product to the broader public. Costco believes it is critical to invest heavily in responsible
person of expanding their business, and when reps are dissatisfied with their employment, their
attitude can negatively impact the retailer's purchasing experience.

COSTCO’S EMPLOYEE ENGAGEMENT TESTIMONIALS:

Costco employees appear to like working at the company. Glassdoor ratings gave Costco a 3.9-
star rating (Costco Wholesale (Glassdoor), 2014). Workers also notice exceptional compensation
and benefits, for example, high-quality, low-cost health insurance in any case, for reduced
representatives, adaptable planning for guardians and understudies, and fantastic management
that listens to particular workforces' recommendations. Representatives are more disposed to
invest additional energy assuming they accept they will be perceived for itself and on the off
chance that administration draws in them on a more private premise. They are bound to be
fulfilled in their position on the off chance that the representatives are fulfilled. Clients will be
satisfied, and deals will increment. On Glassdoor, Costco has 1,329 surveys. 82% of respondents
said they would recommend the firm to a companion. Costco helped their incomes by 5% in
2014, with net deals of $103 billion. Benefits for the two firms added up to $2 billion (Kline,
2014). Costco treated its workers better, subsequently their consumptions were fairly higher, yet
they acquired benefits while offering a superior way of life for a more noteworthy number of
representatives.

Employee feedback on Indeed had similar discoveries. Workers said in their reports that their
partners and supervisors were amiable and all around prepared. Great client care and equipped
staff were helped by superb preparing. Most of staff esteemed fulfilling customers (Costco
Wholesale (Indeed), 2014). They were content in their occupations, in this manner they had the
option to pass on their energy and idealism to the customer.

COSTCO VS. COMPETITORS

RECOMMENDATIONS:

In the event that an organization genuinely sees its kin as its greatest and most valuable resource,
it isn't only the obligation of Hr. Department. Obviously, HR assumes an urgent part in
supporting effective and productive representative work, utilizing the perfect individuals, and
preparing and creating laborers, however accomplishing long haul worker commitment will
require more than HR. There will be inclusion at the chief and the executive’s levels. Leaders
should be honest with their representatives to assemble trust, impart successfully about
organization results and objectives, and consider themselves responsible for fostering an
authoritative culture that advances prevalent proficiency.

The "Three A's of Engagement; affinity, affiliation, and autonomy. Affiliation is more than
simply something else to do; that is something to be a member of. And autonomy does not imply
unlimited freedom to do anything one wants; rather, it refers to established decision-making
rights (Mathis, 2013). In his paper, he also noted that even the most highly successful
engagement programmes employ all three: affinity, affiliation, and autonomy, in a purposeful
and integrative manner.

Employee Engagement keeps on being a troublesome and tedious movement since no two
representatives are indistinguishable. Make sure that you like your laborers' persistent effort and
cause them to feel significant and significant, alongside an expression like "Much obliged" to
show thanks consistently, is an awesome spot to begin with regards to creating propelled,
submitted, gave, and drew in workers.

CONCLUSION

Costco is the gold standard in terms of employee engagement. They are the epitome of a thriving
company that values employee well-being. They have demonstrated that it is possible to rise to
the top of the industry by concentrating on people instead of lowering costs. The focus on
employee participation at Costco gives ideas that may be applied to any organization. It is critical
to consider the long-term consequences of your activities in order to reduce turnover of
employees and make staff feel valued. By immersing employees to work hard, a firm may send a
favorable corporate image to the rest of the globe, which is especially significant in industries
where employees have regular contact with clients.
REFERENCES:

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Costco Wholesale. (2014, November). Retrieved from Glassdoor:

http://www.glassdoor.com/Reviews/Costco-Wholesale-Reviews-E2590.htm

Costco Wholesale. (2014, November). Retrieved from Indeed: http://www.indeed.com/

cmp/Costco-Wholesale/reviews?from=overview

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matter/

Kline, D. (2014, January 31). Sam's Club vs Costco. Retrieved from The Motley Fool:
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Mathis, T. L. (2013, September 25). Three Strategies for Employee Engagement. Industry Week.
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McGregor, J. (2014, October 28). In keeping with its values, Costco to close on Thanksgiving.
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Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. W. (2014). Fundamentals of Human
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Reilly, R. (2014, January 7). Five Ways to Improve Employee Engagement Now.
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Sullivan, J. (2012, February 23). What's Wrong With Employee Engagement? The Top 20
Potential Problems. Retrieved November 6, 2014, from http://www.ere.net/2012/02/23/what’s-
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Taube, A. (2014, October 23). Why Costsco Pays Its Retail Employees $20 An Hour. Retrieved
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